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What Life Insurance Do You Really Need?

The large number of insurers available online can make doing life insurance comparison seem a bit tedious. But it really is an effective way to find adequate coverage, so you may want to compare life insurance products and the various packages they come in. Taking time to assess your particular requirements may help you better select the policy you really need.

Term Life Insurance

This pays a lump sum amount upon the policyholder’s death or determination of a terminal illness. This type of insurance is normally offered in 10-year, 20-year, and 30-year terms. People with financial dependants may find this type of insurance beneficial.

Choosing the length of term is perhaps the most challenging when it comes to this coverage. Some people choose shorter term life insurance. Empty nesters nearing retirement age, for example, may find a shorter term more useful. Term life insurance may be renewed at the end of the term or allowed to lapse.

Then there are those that choose longer term life insurance. Families just starting out or those with young dependants often choose this, so that their life cover extends until their children are older.

Income Protection

This insurance provides a regular payment if the policyholder is rendered temporarily unable to work. Payments will normally last until the policyholder is able to resume work, or up to the age of 65, depending on the policy.

Primary breadwinners may find this cover reassuring. They can take their time to recover from an illness or temporary disability without worrying too much about how to take care of daily living costs.

Total and Permanent Disability (TPD) Insurance

This type of life insurance may help people who become disabled by illness or injury and are declared entirely unable to continue any type of gainful employment. The payment is normally a lump sum. An arrangement for continued periodic payments may also be agreed upon with the insurance provider.

Primary breadwinners are again the ones who most often choose to take out income protection insurance. Folks who have jobs with a known risk of injury may benefit from having this cover as well.

Trauma Cover

Sometimes called Critical Illness Cover, this insurance gives a lump sum payment if the policyholder is afflicted with particular serious infirmities such as stroke, heart attack, or cancer.

Folks who provide for their families may decide to take this coverage, while people who come from families with a history of one of the covered illnesses may want this insurance as a safety net.

Setting aside funds for the future may not always seem urgent or even necessary in the present. Looking after your family’s daily needs may be taking much of your time and energy already. But imagine how your family will manage should you unfortunately end up temporarily or entirely unable to work. Just because you are able to provide for them now doesn’t mean you shouldn’t prepare for the unexpected. Life insurance is one way you can help to secure your family’s financial future.

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